Global drop in frictionless authentication: Peak season sales at risk as frictionless payment approvals decline

Ravelin is warning ecommerce merchants to urgently review their payment strategy ahead of Black Friday, Cyber Weekend and in the lead up to the holidays, as new research reveals a global drop in frictionless authentication rates, threatening sales conversions during one of the busiest shopping periods of the year.

Ravelin’s Global Payments Report 2026 reveals that frictionless authentication has fallen in 76% of countries, meaning fewer customers are enjoying a smooth checkout experience. Frictionless rates — successful authentication attempts without challenge — have declined in every region and now stand at just 54% in North America, 62% in Europe, and 58% globally.

Ravelin’s report further shows that 78% of merchants are trying to reduce friction through exemptions, but issuers are increasingly rejecting these requests as their expectations tighten. This creates a vicious circle that pushes up false positive rates, leading to abandoned shopping carts and lost revenue.

The report also finds that overall 3D Secure (3DS) success rates have improved only modestly, largely driven by US gains (a 47% increase in 3DS success rate), while the UK remains the global leader in authentication performance.

As the seasonal surge approaches, Ravelin advises retailers to focus on three priorities:

1. Share more and better data: Provide richer data to the card issuer to support the legitimacy of the transaction. Learn from the data you receive back.

2. Optimize intelligently; don’t always chase the highest exemption: Issuer risk tolerances vary, so blanket exemption requests – for example, based on transaction value – can fail. Smarter, adaptable models that tailor decisions to each issuer and transaction can dramatically improve frictionless rates and approval success.

3. Invest in intelligent authentication systems: Utilize historical data and machine learning to predict and prevent friction before it happens.

“Merchants that master data-powered AI-native authentication will convert more customers, protect revenue, and build lasting loyalty at the busiest time of the ecommerce calendar,” added Sweeney.

UK planning to move beyond PSD2

The Global Payments Report also explores the impact of the UK reshaping the currently-applicable PSD2 SCA mandate within the country, as set by the European Commission and integrated into UK law before Brexit. The UK government’s National Payments Vision outlines plans to explore new, “outcomes-based” approaches to authentication, a move aimed at reducing friction for consumers while maintaining fraud protection.

According to Ravelin’s report, more than half (51%) of British merchants would like to see SCA abolished altogether, reflecting growing frustration over the impact of regulation on customer experience.

This could make the UK an outlier internationally, although the landscape is fast-shifting and merchant attitudes vary. Many Asia-Pacific countries are tightening authentication mandates.

According to the report, 72% of merchants have concerns about how the upcoming PSD3 legislation will affect conversion rates in the EEA — indicating potential support for an alternative approach, similar to the UK’s.

Ravelin’s AI-native solutions are designed to help merchants manage this complexity at scale — including preventing fraud, boosting 3D Secure success, and optimizing transactions.

Ultimately, they allow merchants to accept more payments with confidence and craft smooth customer journeys without compromising risk or compliance.

About Ravelin

AI-native fraud prevention company Ravelin provides technology and support that helps 340+ online companies prevent evolving fraud threats and accept payments with confidence. Combining machine learning, graph networks, behavioral analytics, consortium data, and expert rules, Ravelin has been empowering businesses to draw deeper insights from their data to detect ecommerce fraud and abuse, and increase payment acceptance, for over 10 years. Find out more at www.ravelin.com